Banks, stocks, investments and Jane Bryant Quinngreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Jane Bryant Quinn has an article in Newsweek on banks and investments. She follows the official line about taking only a few day's worth of money out of the bank. But, she is now the second mainstream news writer I've seen suggest that Y2K may affect the stock market.
First the quote on banks and then the quote on stocks...
New Year's Eve falls on a Friday this year. Ann Coffou, Y2K consultant at Giga Information Group in Cambridge, Mass., says she'll be taking cash for the weekend out of the bank. She pooh-poohs the idea of laying in money for a month, as some alarmists urge. If you can't get cash from your usual ATM, another machine will probably work. If a failed switch stops every ATM in town, there are always tellers (remember them?). Banks will have extra staff on tap. The Federal Reserve has ordered an additional $50 billion in currency, to cover any increase in demand.
Sheep, goats: You'll soon hear more talk about how Y2K might affect individual stocks. In early April, Coffou says, money managers will start to separate the sheep from the goats, by talking intensively with firms and reading the 10K disclosures they have to file with the SEC. Companies should have updated most of their systems by now, and be testing how they work. They should also be testing whether their suppliers are equally well prepared.
In Asia, where capital is short and preparedness lags, Y2K is an issue already, says emerging-markets manager Kent Baur of Montgomery Asset Management in San Francisco. For example, Montgomery didn't buy PT Telekom, Indonesia, partly because the company won't be ready next Jan. 1.
-- Kevin (email@example.com), January 26, 1999
Also see the stock market article at this thread...
"Warning: Fragile stocks, Y2K style"
-- Kevin (firstname.lastname@example.org), January 26, 1999.